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QF Group possible Redundancy Numbers/Packages

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QF Group possible Redundancy Numbers/Packages

Old 26th Jun 2020, 13:19
  #521 (permalink)  
 
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Originally Posted by dr dre View Post
With multiple billion dollar profits leading up to this year, decent reserves of cash to stay afloat for 18 months and good financial discipline have put the company in one of the best positions for an airline worldwide in dealing with this. The way some posters here are talking they would rather the airline be loaded up to the eyeballs in debt paying off orders of dozens of 777s.

Being in this position didnít come about by luck, it was due to smart financial management.
Is that the same smart financial management that destroyed capital, by buying back shares over the last 5 years at an average of $4.68 only to issue shares at $3.65?

Approximately $3.5B has been spent on share buybacks from October 2015, taking number of shares on issue from 2.198B down to 1.464B.

Now raising $1.9B issuing 509m shares which takes us back up to 1.973B shares.

My back of the envelope calculations have that as over $500m in capital destroyed. Not sounding so smart to me.

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Old 26th Jun 2020, 13:40
  #522 (permalink)  
 
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Angry, hindsight is a wonderful attribute.
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Old 26th Jun 2020, 13:56
  #523 (permalink)  
 
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Originally Posted by Ken Borough View Post
Angry, hindsight is a wonderful attribute.
So how else do you judge performance? Before they perform? Right back at you
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Old 27th Jun 2020, 00:28
  #524 (permalink)  
 
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I’m not sure how you expect him not to destroy some equity in the middle of a pandemic? Same reason unfortunately airlines are letting 20-50-100% of their staff go. I mean never waste a crisis but things can’t stay the same and survive in this environment.
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Old 27th Jun 2020, 01:46
  #525 (permalink)  
 
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Originally Posted by ozbiggles View Post
Iím not sure how you expect him not to destroy some equity in the middle of a pandemic? Same reason unfortunately airlines are letting 20-50-100% of their staff go. I mean never waste a crisis but things canít stay the same and survive in this environment.
I do expect some equity to be destroyed during a pandemic, the outflow of $40m a week is testament to that. Thereís nothing you, I or AJ can do about that.

My comments are purely from a financial management perspective and directly aimed at buybacks. Buybacks are what you do to increase a share price, by reducing shares on issue, as opposed to increasing your share price through investment. In financial circles, itís usually scorned upon because it shows a lack of vision. This buyback has demonstrated why and has directly resulted in the loss of more than $500m.

$3.5B is a huge sum of money that could have been invested elsewhere. For those that are saying we are so lucky that we arenít up to our eyeballs in debt because Qantas invested in a fleet of 777/350ís, well thatís not true. We could have had a fleet of 12(747 replacement) and an extra $1B in the bank. Iím not saying this is how Qantas should have spent the money, itís just that the calls of being in more financial trouble than we currently are, arenít true.

Now having said that, I will give credit where itís due. Iím very impressed that AJ has diversified through Qantas Loyalty into credit cards and insurance. Qantas Loyalty would be helping stem the losses and making us a viable attractive business. I think right now Qantas needs stability and I think AJ provides that, all I was doing is pointing out that AJ is not the messiah that some seem to be making him out to be.
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Old 27th Jun 2020, 01:53
  #526 (permalink)  
 
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You could have had Borghetti!
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Old 27th Jun 2020, 02:23
  #527 (permalink)  
 
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Originally Posted by ozbiggles View Post
You could have had Borghetti!
Ha! I think Borghetti would have been a different CEO if he was here, wouldnít have spent his whole time trying to prove himself to his competitor. We will never know, but Iím ok with how itís turned out. I donít have to like the CEO, thatís an ideological path Qantas went down, but the longer Iíve been here, itís become more apparent that as long as the tough(unpopular) decisions are made, this place runs itself. Itíll take some real incompetence to crash(pun intended) this business.

Edit: I do also want to add, I feel very lucky to work for Qantas, always have and always will.
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Old 27th Jun 2020, 03:03
  #528 (permalink)  
 
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With QF now a very different airline going forward do we need 3 CEO’s?

Surely we should make at least 1 redundant. Andrew David has been MIA (couldn’t phone in to at least 1 webinar over the last 8 weeks wtf?)
And then we have Tino, CEO of a non existent International.
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Old 27th Jun 2020, 03:22
  #529 (permalink)  
 
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Originally Posted by ozbiggles View Post
You could have had Borghetti!
They nearly did.
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Old 27th Jun 2020, 03:48
  #530 (permalink)  
 
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In defense or JB he did have a vision.

Sure, ego and execution got in the way, but the basic vision was there. It looks like that might potentially be realised now for VA going fowards (one hopes).
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Old 27th Jun 2020, 04:15
  #531 (permalink)  
 
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Seems to me that the problem with Borghetti was that he tried to run Virgin like it was Qantas. Perhaps if heíd got to run Qantas like it was Qantas, the result wouldíve been very different. Weíll never know.
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Old 27th Jun 2020, 04:24
  #532 (permalink)  
 
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Monday night Four corners I believe is on the demise of Virgin and I’m told Borghetti doesn’t come out of it very well
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Old 27th Jun 2020, 05:25
  #533 (permalink)  
 
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Totally with you Lapon. He Ďdiedí doing what he set out to do. Better to have tried etc etc...
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Old 27th Jun 2020, 06:03
  #534 (permalink)  
 
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So the latest on JQ ďsurplusĒ Perth and Newcastle crews seem to be (in a nut shell), give us 2 years of a concessional EBA and we might not make those crews redundant. Canít say Iím surprised but seriously can this guy give an already very stressed workforce a break.
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Old 27th Jun 2020, 06:55
  #535 (permalink)  
 
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Originally Posted by CaptCloudbuster View Post
With QF now a very different airline going forward do we need 3 CEOís?

Surely we should make at least 1 redundant. Andrew David has been MIA (couldnít phone in to at least 1 webinar over the last 8 weeks wtf?)
And then we have Tino, CEO of a non existent International.
Why have they ever needed 3 X ceo?
Maybe the title entitles them to more pay without being scrutinised by shareholders etc.
On the point of having large cash reserves,seems contradictory to go & mortgage every aircraft you can & then do an equity raising,paying interest on borrowed money & pushing the share price lower is an interesting way to save money.
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Old 27th Jun 2020, 07:07
  #536 (permalink)  
 
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Originally Posted by blubak View Post
Why have they ever needed 3 X ceo?
Maybe the title entitles them to more pay without being scrutinised by shareholders etc.
On the point of having large cash reserves,seems contradictory to go & mortgage every aircraft you can & then do an equity raising,paying interest on borrowed money & pushing the share price lower is an interesting way to save money.
Try 5

Andrew David - Domestic and Freight
Tino - International
Olivia - Loyalty
Gareth Evans - Jetstar
And Alan Joyce, CEO of CEO's.

https://www.qantas.com/au/en/qantas-...eadership.html
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Old 27th Jun 2020, 07:15
  #537 (permalink)  
 
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Originally Posted by unobtanium View Post
Try 5

Andrew David - Domestic and Freight
Tino - International
Olivia - Loyalty
Gareth Evans - Jetstar
And Alan Joyce, CEO of CEO's.

https://www.qantas.com/au/en/qantas-...eadership.html
The more the merrier!
We been everywhere men.
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Old 27th Jun 2020, 07:17
  #538 (permalink)  
 
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https://taipeitimes.com/News/biz/arc.../26/2003738867

Hard times still ahead.
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Old 27th Jun 2020, 08:08
  #539 (permalink)  
 
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I do expect some equity to be destroyed during a pandemic, the outflow of $40m a week is testament to that. There’s nothing you, I or AJ can do about that.

Struth 40m a week, as a comparison during Ansett's last years they were losing 7m a week. The value of money in 20 years. I realise different era.
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Old 27th Jun 2020, 08:08
  #540 (permalink)  
 
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Originally Posted by armchairpilot94116 View Post
Thanks for the update from the Taipei Times. Very insightful.

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